Well this was strange...long


#1

A local MHP in Belleview, FL, The Briarpatch, gave notice to all tenants last summer that the Park was sold and tenants had 1 year to vamoose. We moved several and got phat checks from the State for doing this.

Well, I bought a 94 General 28 X 76 4/2 out of there last week from a local lender and when the crew went to remove the repo, there was a chain across the main drive. Went to owner, Gail, and she tells me the Park has been closed since July1. THERE ARE OVER 40 HOMES STILL THERE!! It was eerie driving thru there. A/c’s are there, all apps in all homes we entered. CARS STILL PARKED IN THE CARPORT!!!

About one third turned over titles prioer to splitting, the rest just walked away. Gail told me to remove home and police the area when done and we can HAVE any homes we want with the caveat we clean the site to the dirt(pull all anchors, pipes etc.) The 10 or so with titles we will take to resell, but the others we were gonna pass on…

Until I got an idea…so I called Marion County Building Department and asked " Do i need title to the home to place on land and develop to CO (Certificate of Occupancy). NO, i just need HUD plates or Data Plate for Wind Zone, so i called my insurance agent and asked if i can insure the home…yes if I have notarized Bill of Sale.

We will place these homes on small, dirt road lots and sell with RP stickers (Real Property) As is/where is. A sample of the homes? 91 Redman 4/2 28 X 68, 89 Guerdon 28 X 56 3/2, 1995 fleetwood 14 X 70 2/2.

These are nice homes…is this typical of closings??? I love it!!!

Any ideas on where to get a list of MHP closings in FL? What do you think, is this weird? Or an opportunity? Does it seem ghoulish (hey it’s close to Halloween) to benefit from other’s misery? Seems like good business to me. As a licensed Dealer we may NOT sell any home (even on land) without “clear title”. But as individauls we can buy land and homes and sell with or w/o title with full disclosure. Give me your gut on this please.

Regards,

Greg Meade


#2

Makes me wonder why they closed the park, and are letting the empties sit. I would figure a “higher better use” scenario for development; well, what’s the holdup on demo? THAT’S what’s weird.

I think that your ability to cheaply buy dirt road lots in that great a volume is fantastic. WELL beyond the means of most investors with the time to surf the internet. Not to mention the permitting and coordination of development of these lots. Criminy, I’m redeveloping ONE lot and its making my hair fall out.

Why not take the time and money and develop a park? Or, buy an empty or nearly empty park and fill it? Have you cost analyzed the difference between a park and the individual lots? Seems like sale cash versus cashflow . . .

OR!!! truck them babies to one of the turnaround entrepreneur/investor park projects, like Jim & Ellen’s, or Fred’s, or Daphne’s?

As far as ghoulish or not, weird or opportunity, it IS just business. The damage is already done; they’re gone. Only the MHs remain. Lemonade to be made.

Perhaps a quicker nickel would be to sell the titled units, and use the non-title units for slow dimes: development/RP stickered props.


#3

questions. Gail bought the Park in 1997 for 260K with 40 spaces and she added 24 spaces. There areover 40 acres and being within walking distance of Belleview High School it soon became too valuable as homesites. A group of local investors bought it for 2.2M all cash andwill develop into 65 1/2 acre sites. Lots will sell for approx. 80-90K and this will be a gated community. They fig one mill in infrastructure and take profits…not a bad plan.

We don’t have cash to develop 30+ lots either to place these on, but we do have room to store them and funds to place 8-10 per year to sell on contract (triple net lease). Long term plan. Something folks need to remember is in FL it costs 3500 to break down, transpo a singlewide within 50 miles, and reset to State code. 6500 for a doublewide. Well,septic,power pole pacs are 8500,impact fees are 7K and throw another 2K for yucks. So these 3500 lots are really 20k. and thse free homes are 4-7K before any rehab work is done.

The new owner’s want homes removed by Dec. Roads start in May next year. It takes about 2 years to put together a subdivision in florida for the permit process, etc.

We put together 11 L/H pacs this year and several hung over from last year. We have 9 availabe for sale right now…things are slow here. If we could sell these 9, we could develop most of the thirty lots. Things happen when they are supposed to I guess. 9 homes in Park are junk and we will pass on these. We don’t have the license to transpo out of state and we recently offered a freebie 96 14 x 70 near Atlanta to Daphne and she can not set in her county or Park due to age and metal on metal cladding.

These old homes have little value here…we take 4-5 homes per month to the Dump. Have a great meeting Steve…

Your friend,

Greg


#4

These are typical MHP’s in FL.

http://www.mobilehomeparkstore.com/p4sale/fl_southeast_300.htm

http://www.mobilehomeparkstore.com/p4sale/fl_weis.htm

http://www.mobilehomeparkstore.com/p4sale/fl_auburndale80.htm

http://www.mobilehomeparkstore.com/p4sale/fl_lakeapopka_25.htm

These are 45K to 100K per space and ALL of these are 55% expense Parks with "maybe’ a true 6 CAP rate. Turnarounds here are hard to find and are still expensive. I can develop a good lot on paved roads for under 25K. And a lot of counties in florida won’t allow homes over15 years into County for placement. I want to buy a small park next year for retirement maybe in tn!

Greg